Litecoin price started a downside correction and declined below $58.00 against the US Dollar. LTC/USD could continue to move down towards the $54.00 and $52.00 levels.
Key Talking Points
Litecoin price is currently under pressure as it broke the $58.00 support (Data feed of Kraken) against the US Dollar.
There was a break below a contracting triangle with support at $60.80 on the hourly chart of the LTC/USD pair.
LTC price may continue to move down towards the $64.00 support if sellers remain in action.
Litecoin Price Forecast
Yesterday, there were a few bearish signs below the $62.00 support in litecoin price against the US dollar. The LTC/USD pair started a downside correction and declined below the $58.00 support level.
Looking at the chart, LTC price even broke the $57.00 level and settled below the 100 hourly simple moving average. There was an increase in selling pressure and the price declined below the 50% Fib retracement level of the last leg from the $51.53 low to $63.87 high.
More importantly, there was a break below a contracting triangle with support at $60.80 on the hourly chart of the LTC/USD pair. It opened the doors for more losses and the price traded below the $56.50 and $56.80 pivot levels.
If the price continues to move down, the next support is near the $54.40 level. It represents the 76.4% Fib retracement level of the last leg from the $51.53 low to $63.87 high. Below, $54.40 and $54.00, the next stop could be $52.00.
If the price corrects higher, the previous support near the $58.00 and $57.80 levels are likely to act as hurdle for buyers. Above these, the price will most likely rise above the $60.00 level to test the $62.00 swing high.
Overall, litecoin price likely moved into a bearish zone below $58.00. Therefore, there are high chances of more losses towards the $54.00 and $52.00 levels in the near term. On the upside, gains could be capped bear the $58.00 and $60.00 levels.